HEALTH CARE

Health Systems to Buy HMO: Health Systems International Inc. said the acquisition from Philadelphia-based Graduate Health Systems Inc. will cost $100 million in cash and notes. Under the agreement, Health Systems will acquire Graduate’s 98,000-member Greater Atlantic health maintenance organization and related physician clinics, home-health operations, primary care physician practices and certain other business. The deal will give the Woodland Hills-based company a stronger foothold on the East Coast. It already serves 1.6 million members in seven Western states and is one of California’s fastest-growing HMOs. Graduate had 1994 revenue of more than $200 million, most of which came from the HMO. The acquisition, the third big transaction for Health Systems this year, is expected to close by the third quarter.